By Ketki Saxena
Investing.com -- The Canadian index tracking Wall Street lower today as Treasury yields surged to multiyear highs, and concerns of a hawkish federal reserve overshadowing earnings optimism for the moment.
The Canadian index was also pressured by a hotter-than-forecast CPI reading, which fuelled expectations of another outsized rate hike by the Bank of Canada next week.
Further losses on the commodity-heavy Canadian index were capped by an uptick in crude prices on positive indicators of resurgent Chinese oil demand, including further import quotas.
The OPEC+ output cut of 2 million bpd, as well as the pending EU ban on Russian crude also supported prices, despite US President Joe Biden’s plan to release 15 million barrels of oil from the Strategic Petroleum Reserve (SPR).
The Biggest Stories on Bay Street
Wealthsimple says it has been approved for a direct settlement account by the Bank of Canada, which paves the way for its access to the an real-time-rail payment system. Access to the system will allow Wealthsimple to roll out and better payment options for merchants, such as instant wage and bill payments.
Parkland (TSX:PKI) Corporation announced its third-quarter profit expectations will be lower than previously forecast due to the current downbeat macroeconomic environment and volatile product prices for the adjustment. Parkland has forecasted adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in Q3 to be $325 million.
Circle K, owned by Quebec-based Alimentation Couche-Tard, has signed a deal with US cannabis producer Green Thumb Industries Inc. to sell licensed marijuana at its Florida gasoline retailers. The partnership will begin next year with 10 of the company’s 600 locations in the state, Green Thumb said. Florida is one of several states where cannabis can be legally sold only for medical use, and purchases will be restricted to Floridians who have medical marijuana cards.
Canadian Stocks Moving Markets This Morning
Top Gainers:
- Precision Drilling
- Vermillon Energy
- Crescent Point Energy (TSX:CPG)
Top Losers:
In Canadian Economics
Statistics Canada reported Wednesday that the consumer price index declined to 6.9% in September, down from 7% in August. Economists had been expecting an ever bigger drop off to about 6.7%.
The increase was largely driven by grocery prices, as food purchased at stores increased at a pace of 11.4% year of year.